Investor anxiety over the Covid-19 Omicron variant was seen easing, seeing trading of most major currencies have started to show positive movements on Tuesday.
A statement from US President Joe Biden gave little relief when he said that the country would not re -implement the curfew.
He added that they would have to face this new threat the same as they had faced before, besides saying that his administration would issue a strategy to deal with the variant.
In the Asian session, the dollar index traded slightly lower at 96.18 against a basket of major currencies, not far from the one -week low it reached last Friday.
Biden’s statement benefited most major currencies to return to climbing today. The euro rose slightly with the price movement seen towards the level of 1.1300 against the USD.
Meanwhile in a text prepared for evidence to Congress on Tuesday, Federal Reserve (Fed) Chairman Jerome Powell said Omicron could cause inflationary pressures to last longer.
This indirectly shows the potential to accelerate the need for rate hikes, although initially investors saw this variant would prevent the Fed from tightening due to its risks on growth.
